Buying an apartment under DDU in 2021: What's new?

Home › Questions and Answers ›

2020 made its own adjustments, rules and benefits. And some of them remained in 2021, so before we talk about the innovations of 2021, let's look at what remains relevant from last year, and since I already mentioned benefits earlier, let's start with them.

In 2021, one of the government support instruments was a preferential mortgage rate of 6.5% per annum for buyers of apartments in new buildings, and this program was extended until July 1, 2021. It is not yet known whether it will be extended again, but let’s remember the main conditions for obtaining a preferential mortgage:

Have Russian citizenship
The mortgage agreement must be concluded before July 1, 2021.
Only apartments in new buildings are suitable
The house can be either at the “pit” stage or already for rent
The maximum amount varies from 6 million to 12 million rubles depending on the region.
The rate is 6.5% per annum for the entire loan term.
The down payment is at least 15% of the cost of housing.
It is possible to use maternity capital or other types of government support.

It is important that the mortgage agreement must be concluded before July 1, 2021; this program applies to both ready-made apartments and apartments in the “pit” stage.

What innovations have appeared in 2021?

The abolition of shared construction has been discussed for a long time, but this would be too risky a step. Therefore, in 2021, a decision was announced to make a smooth transition to a new model of participation in construction - project financing. That is, now the bank will act as a guarantor of the success of construction. Is it good or bad?

It is difficult to answer this question unambiguously; of course, this scheme looks the most transparent, if only because the money invested by investors “will not go anywhere”, but will be transferred to escrow accounts in banks; we will tell you what these accounts are a little later. Among other things, in the event of the developer’s bankruptcy, investors will have their deposits returned, because now the developer is obliged to build with finances “out of his own pocket,” which will certainly lead to a “cleansing” of the development market.

But now let’s look at the same scheme through the eyes of a shareholder, let’s say you purchased an apartment at the “pit” stage, investors invest money in the developer, but in the middle of construction he closes the construction site and declares himself bankrupt. The bank reimburses all the money to investors, but what about shareholders? No, shareholders, unfortunately, cannot withdraw their money ahead of schedule; they will have the right to do so only when the company violates the terms of the project financing agreement.

But let’s not panic ahead of time, according to the adopted amendments to the law on shared participation in construction, in 2021 a company will be able to complete a project according to the old rules if:

Buyers have made at least 10% of the investment, and the facility is at least 30% ready;
The facility is 15% ready, but within the framework of the project, comprehensive infrastructure development is planned (for example, opening a kindergarten and school, opening a store or cafe)
Readiness is from 6%, but the work is carried out by a large, reputable company.

The essence of shared construction

Features of a shared construction agreement

Shared construction is a special type of development. At the same time, the developer does not have the financial resources to construct a multi-storey residential building, but he has a plot of land that has been purchased or taken on a long-term lease, all construction permits, as well as design documentation. Or he does not want to deal with the design and further sale of apartments.

The other party to such construction are individuals or legal entities. They have some financial resources to make a down payment, and are willing to pay the required monthly fee.

Now we'll tell you everything!

Let's start with a simple one, an escrow account is a bank account in which certain amounts are stored until certain circumstances are met, in this case, construction and the start of renting out apartments to equity holders. The legal side of escrow accounts and escrow accounts in shared construction can be found in Article 860.7-860.10 of the Civil Code of the Russian Federation and Article 15.4 of Federal Law-214.

Since 2014, it became possible to conclude an escrow account agreement, but at that time it was only one of the types of bank accounts, but was used, for the most part, only in the public sector. corporations.

Then in 2021, they began to think about using escrow accounts as a guarantee of work completion. However, then this idea did not receive any large-scale response and was shelved for another couple of years.

And in 2021, the government finally announced the use of such accounts.

Earlier I mentioned that escrow accounts are not ideal for investors, but let’s figure it out anyway. The payment mechanism through escrow accounts ensures that you either have money left over or you get the apartment. Money for construction is blocked or, in banking parlance, deposited in accounts until the ownership of the first rented area/apartment is registered. Also, if any problems arise with the developer, the buyer will be able to return the amount he paid.

Developers are financed for the most part by banks, and escrow accounts are also opened in the same banks lending to the project. Therefore, the builder or developer can benefit from a good sale of apartments during the construction phase and reduce the interest on the loan.

Benefits according to DDU

The construction of a new preschool building has many positive aspects.

Purchasing an apartment using a contract is a chance for the following privileges:

When drawing up a deal and considering the project, you can order the desired layout of your square meters, this approach will allow you to fulfill your wishes and get the home of your dreams.
All technical communications will be new, so for a certain period there will be no need for funds to repair the sewer system or replace outdated parts.
The price of an apartment purchased through shared construction is 30–35% cheaper than if you buy the desired property on the real estate market.
Modern technologies are taken into account when constructing new buildings, due to which payments for housing and communal services are significantly reduced.

The down payment is paid by the buyer after the deal is signed and funds are distributed. Shared construction with a bona fide developer is always a good prospect for investing your money. The key to the apartment is received after the specified deadlines; there is a risk if the conditions are not met, but this aspect is regulated by legal and regulatory acts.

We recommend that you read:

Is it possible to terminate an equity participation agreement with a mortgage and get the money back?

The agreement, the share participation transaction also implies the possibility of obtaining a mortgage, which will allow you to purchase housing in a short time, and when the loan is repaid, the citizen will receive another living space at a low price. Matkapital can act as collateral for the construction of an apartment.

What are the pros and cons of escrow accounts?

The buyer retains his funds in the event of bankruptcy or other problems of the developer, if all obligations under the contract are fulfilled.
The parties entering into an escrow account agreement can choose the documents themselves that will serve as a guarantor of the transaction.
Investments up to 10 million rubles are insured by the Deposit Insurance Agency.
Escrow accounts are not subject to seizure (clause 4 of Article 860.8 of the Civil Code of the Russian Federation. Restrictions on the disposal of funds and the use of an escrow account).
The shareholder opens an escrow account for free.
The scheme for purchasing real estate through escrow accounts makes it possible to get rid of the asymmetry of the transaction, where on one side is the shareholder (or his authorized representative), and on the other is the developer. An individual does not have such competence to check the developer, but the bank can already examine his reliability.

Our cases

Inclusion in the register of transfer of housing
How we overcame the bankruptcy trustee and entered the register Read more
Recovered: RUB 2,260,000.
How we squeezed 2,260,000 rubles out of crooked window profiles from the developer LSR Object-M Read more
Recovered: RUB 1,634,800.
We collected 1.6 million rubles (206%) for deficiencies in the decoration of the apartment according to the DDU from FSK Leader More details
Investment is not recommended
How we saved the client RUB 14,665,500. investment Read more
Recovered: RUB 898,735.
The developer "Lotan" paid the shareholder 274% of the market cost of eliminating the defects Read more
Recovered: RUB 2,415,243.
How a shareholder received 2.4 million rubles. from “StartSK” on the agreement to terminate the DDU Read more
Recovered: RUB 1,180,500.
The court recovered 537% of the cost of eliminating deficiencies from PIK-Region More details
Recovered: RUB 21,394,502.
How to get 21 million rubles. upon termination of a contract for an object worth 9 million. Read more
Recovered: RUB 14,500,000.
As a developer, Mayak paid 14.5 million rubles. for the war he started Read more
Investment is not recommended
How an analysis of a counterparty helped save RUB 3,385,679. More details
Recovered: RUB 641,094.
We collected more than 215% of the cost of eliminating defects from the Lotan developer More details
Recovered: RUB 2,200,000.
Collection of 2,200,000 rubles from BM-Stroy for poor quality repairs in an apartment Read more

All cases

Strategy and tactics of negotiations with the developer

I would like to note right away that the process of negotiations with a developer differs significantly from the format of usual business negotiations. It is these features (I was personally convinced) that usually lead buyers to failure - even those, like me, who, by profession, often conduct successful negotiations with partners. I will list the main reasons why equity holders do not seek concessions at the developer’s office (I realized them after analyzing the situation I had to face):

In most cases, negotiations with the shareholder are not conducted by the person who makes decisions on the issues raised in the DDU (most often the manager listens to the investor).
The equity holder is much more interested in buying the chosen apartment than the developer is in receiving money from one “small” client (especially if he buys a studio or one-room apartment).
And what emerges from the previous point is that the developer will sooner agree to change some provisions of the contract and make concessions to an investor buying several apartments, rather than listen to the shareholder who chose the same tiny studio.
High demand for the property. When a developer has a waiting list in the sales department, the likelihood that he will make concessions to you is extremely low.
Rumors are spreading that changes have been made to the agreement. There is a possibility of word of mouth, as a result of which other buyers will begin to actively put pressure on the developer and demand amendments or changes in each contract. In order to prevent such “problems”, the developer is ready to defend his position to the last, refusing even the most promising investors.

All these points must be taken into account and their neutralization must be thought through in advance. It is equally important to get a meeting with the developer’s lawyers, and not with the manager, who is not able to influence the contract. The actions of the shareholder should be as follows:

Carefully read the proposed contract - a lawyer did this for me.
Highlight provisions that are fundamentally unacceptable to you or carry serious risks. I had the following points:
pegged to the dollar exchange rate (implies a possible increase in the cost of the apartment);
the developer's own operating/management company specified in the contract.
Formulate these provisions in other editions so that the identified risks for the investor (you) are minimized. And provide them to lawyers.

Developers usually do not want to agree to the following changes to the contract:

increasing their financial liability in case of failure to fulfill obligations;
changing the order of calculations (like mine - it was necessary to decouple the cost of the apartment from the rate of the rapidly growing American dollar);
granting the shareholder the right to freedom of choice of management organization (I was still ready to come to terms with this);
establishing specific deadlines for the transfer of real estate into the ownership of the buyer (I was lucky that they were clearly stated in my contract, otherwise I would have been indignant at this point);
reduction of the shareholder’s financial liability in the event of improper fulfillment of the terms of the contract (excessive penalties are also a point “from my opera”).

Although changes to the agreement were made extremely reluctantly, Yuri and I achieved our goals. The developer fixed my price in rubles until the end of the year (regardless of the changing exchange rate of the US dollar) and almost halved the percentage of financial liability (the developer flatly refused to remove this clause). As a token of gratitude, I made “counter concessions” - I agreed to the services of the developer’s management organization. I also agreed to pay for utilities in the hope that there would be no serious delay in handing over the keys.

Advice: try to achieve concessions on points that are more important to you by making concessions on less significant points (as I did).

And remember: if a representative of the developer tells you that it is impossible to make changes to the contract, do not be upset and do not give up. Talk to the people who are authorized to make such decisions, or even better, at least consult with a specialist. This way you will increase your chances of winning and will be able to change at least some points in the DDU.

Written promises and reaching compromise

It is very important to record all promises and guarantees of the developer’s lawyers or representatives of the sales department immediately in the contract. No verbal assurances! Otherwise, this time can be considered wasted. Know: what is not described in the contract is usually not fulfilled.

After successful (in your opinion) negotiations, you need to carefully read everything again and study the agreement in the new edition. Check:

whether all the changes you discussed have been made;
Is the wording accurate (without subtext or additional nuances);
Are there any other items added to the DDU without your knowledge that will neutralize the changes agreed upon with you?

If you find violations that contradict the law on the protection of consumer rights, you can safely challenge them.

Pitfalls in an agreement with a developer

And now I’ll tell you in more detail what we encountered – what points in the DDU we were confused by, and how the issue was resolved. In general, I was initially prepared for difficulties, therefore, when the lawyer (for convenience, I will call him Yuri) found unfavorable or suspicious clauses in the document and showed them to me, while simultaneously describing the alternative and ways to solve the problem, I immediately called the developer’s office, to make an appointment. We were not satisfied with the points relating mainly to the financial side: the price was tied to the dollar exchange rate and the inflated penalty for the investor was a penalty for termination. That is, if I decide to terminate the contract, I will have to pay 10% of the cost of the apartment.

Rice. 1. Penalty for termination of a pre-employment agreement at the initiative of the shareholder

The third point, the most harmless at first glance, was the connection to a specific management organization, which in the future may lead to an increase in tariffs for home maintenance. A similar point was that from the day the house was put into operation until the apartment was transferred to me, I would be required to pay for the maintenance of the house.

Rice. 2. Payment of utilities

I honestly admit that I myself (without a lawyer) would not have even noticed this point, although I am used to working with documents and carefully read all the papers before signing.

Important Features

The main thing for a successful partnership is the integrity of both parties. To confidently invest your money, you should carefully study the developer’s data. Due to the abundance of advertising and high demand, you can fall for scammers.

The most popular methods of deception by a construction company:

If a developer tries to force the execution of a purchase or sale agreement, then this is a deceptive maneuver that is designed for an inexperienced person. When concluding such a transaction, a citizen buys a void, and the seller, in turn, does not bear any responsibility to the deceived buyer.
A loan agreement involves paying an advance to the account of a legal entity, and the remaining amount after concluding a loan transaction. Acting according to this scheme, a person cannot protect his rights.
Payment for your participation in construction directly to the company’s account. All payments must be made only through the bank; if a company representative insists on transferring money, citing speed and security, you cannot believe his words. All legal transactions can only be conducted through legitimate financial institutions.

There are many options for deception that involve cunning schemes. Trusting and inexperienced citizens are easily led into such manipulations, which is extremely dangerous. This attitude can lead to loss of money, as well as the inability to prove your rights in court. Fraudulent schemes can be dispelled if you contact a law firm with the proposed documents. An experienced specialist will be able to unravel the deception and help you get out of the current situation.

Only by drawing up a DDU can a shareholder be confident in the legality of the transaction and invest his funds. All procedures that are drawn up are transparent to the shareholder.

Necessary documents, transaction registration

Before registering a DDU, it is necessary to request from the developer all information about him, as well as about the object.

The following is a list of required information:

state registration number, personal data, certificates;
information about the objects that were erected;
license number, its validity period;
financial reports of last year, loan amounts;
information about tax reporting;
permit to carry out activities, construction estimate;
the result of an examination of the project, proof of ownership.

The list of documents is impressive, but this is a guarantee of honesty and openness of a company that is trusted with money.
Signing an agreement does not guarantee its legality. For it to be legally valid, you need to register the document with Rossreestr. This procedure acts as a guarantee of the transaction, after which it gains legal force, and both parties have obligations and rights.

To register and visit the Registration Chamber, representatives of both parties are required. A registration request is submitted, to which the DDU and documents upon request are attached. After ten working days, the citizen needs to appear for the result.

The list of documents may vary depending on the specifics of the transaction itself, as well as the construction option. Papers will be provided to the interested citizen upon request. The transaction can only be registered with the state body Rossreestr.